At the 2024 Annual Conference of the Finance Correspondents Association of Nigeria (FICAN) held on Saturday, September 28, 2024, Mr. Bello Hassan, Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), delivered a compelling speech on Nigeria’s journey toward becoming a $1 trillion economy. Speaking on the theme, “Nigeria’s Journey Towards a $1 Trillion Economy: Impact of Banks’ Re-capitalization, Opportunities for Fintechs, and the Real Sector,” Hassan emphasized the pivotal role that banks’ recapitalization, fintech innovation, and the real sector must play in achieving this ambitious economic target.
Hassan underlined that the real sector—comprising agriculture, manufacturing, and services—remains the engine that must propel Nigeria’s economy to new heights. He elaborated on several key insights:
Boosting Agricultural Productivity
Agriculture remains one of Nigeria’s largest employers, yet it struggles with low productivity levels compared to other African countries. Hassan pointed out that improving efficiency through the use of advanced technology and a stronger focus on value-chain development will be critical. He urged the banking and fintech sectors to provide innovative financial solutions to support farmers and agribusinesses, enhancing access to credit and modern farming tools.
Reviving the Manufacturing Sector
The manufacturing sector plays a vital role in industrialization and economic diversification, but it faces challenges due to high operational costs and poor infrastructure. Hassan called for a coordinated approach to expand local production, improve export capacity, and address the sector’s logistical and energy needs. He noted that Nigeria’s manufacturing sector must increase its contribution to GDP to drive employment and economic resilience.
Strengthening SMEs
Small and Medium Enterprises (SMEs) are the backbone of Nigeria’s economy, representing over 90% of businesses and contributing 48% to GDP. Hassan emphasized the importance of providing SMEs with targeted financial products and solutions. He highlighted that banks’ recapitalization efforts and fintech innovations must converge to offer accessible credit and digital banking tools, enabling SMEs to grow and thrive in a rapidly evolving economy.
Protecting the Financial Ecosystem and Ensuring Stability
As Managing Director of the NDIC, Hassan outlined the corporation’s role in safeguarding depositors’ interests while ensuring financial stability. He emphasized that as Nigeria’s financial landscape becomes increasingly complex with the rise of digital financial products, the NDIC must evolve its frameworks to provide adequate protections. Hassan stressed the importance of the NDIC exploring ways to insure new forms of digital products while maintaining the stability of the financial ecosystem.
A Shared Responsibility
In concluding his speech, Hassan reiterated that Nigeria’s journey to a $1 trillion economy is not the responsibility of one sector alone. He called on the banking sector, fintech innovators, the real sector, and regulatory institutions to work together in driving the country’s economic transformation. “We are standing on the brink of a new era—one defined by innovation, resilience, and sustainable growth,” Hassan remarked. “Let us seize this opportunity to shape the future of Nigeria’s economy.”
The conference, attended by key financial leaders and industry stakeholders, highlighted the significant role that Nigeria’s banking sector and real sector will play in shaping the country’s economic trajectory.
